Netflix users should “expect other countries to increase prices over coming month” following the streaming platform’s US price rise, according to analyst Paolo Pescatore.
US Netflix customers have seen a price rise of between 13 and 18 per cent, the company’s biggest increase since launching its service 12 years ago.
The company’s stock rose by 6.5 per cent following the news.
The extra revenue is expected to pay for Netflix’s investment in original shows and films, as well as financing the debt it’s taken on to compete with Amazon, Disney and Apple.
“Netflix is following the traditional pay-TV model of increasing prices annually,” said Pescatore. “This is certainly one way to increase revenue significantly. It needs to focus on financials as well as subscriber growth.
“For many users, Netflix is an indispensable video service. There will not be much backlash (for now),” he added.